Marketing I: Building a Real Estate Practice (0511) Book format

COURSE DESCRIPTION

How to Build a Real Estate Practice in Texas is a thirty-hour course for experienced real estate professionals who wish to establish their own real estate brokerages. The course provides information on how to successfully operate a business, teaches professional skills necessary to provide high-quality service to clients, discusses risk management and compliance within federal and state law, and addresses issues related to valuation and finance.

There are seven sections or modules to this course and their learning objectives are listed below:

  1. How to Build a Successful Business
    • Understand the risks and requirements of starting a business
    • Be able to create a mission statement, business plan and marketing plan
    • Be able to recognize the significance of market presence
    • Understand the importance of referrals, prospecting and farming
    • Know how to develop effective communication skills
    • Be able to use various marketing techniques in order to promote the services of a real estate brokerage firm
    • Know how to hire and train employees
    • Be able to build lasting relationships with partners and clients
    • Understand the characteristics of an effective manager
  2. Asset Management
    • Be familiar with the basic concepts of asset management
    • Be familiar with the common decisions faced by an asset manager
    • Know what a Real Estate Investment Trust (REIT) is and the benefits of investing in one
    • Understand the risks and rewards associated with real estate investment
    • Know how to conduct a useful market study
    • Understand how interest rates affect the real estate market
    • Be able to calculate the depreciation of residential and commercial real property held for business or investment
    • Be familiar with the financial ratio methods of valuation, including Price to Earnings Ratios and Cap Rates
    • Know how to create a pro forma projection for a real estate investment alternative
    • Know the basics of a Discounted Cash Flow (DCF) analysis
    • Know how to use the Net Present Value (NPV) and Internal Rate of Return (IRR) to compare the values of several alternatives
    • Be familiar with distressed properties and how to handle them
    • Know the important factors to consider when refinancing
    • Be able to apply these concepts in the real world
  3. Tax-Favorable Real Estate Transactions
    • Identify motivated buying and selling clients.
    • Outline the attributes of qualified and non-qualified products and how they can benefit to the sales process.
    • Describe the restrictive rulings of the 1031 exchange program.
    • Explain how money can be accumulated using pre-tax dollars, accumulating interest on a tax-deferred basis and creating litigation protection.
    • State charitable strategies for creating income and tax relief for individuals or families owning highly-appreciated real estate.
    • Describe charitable gift annuities and the annuity payments, income benefits and tax advantages associated with them.
    • State the parameters that the IRS uses to define a valid "like kind" exchange.
    • Explain the advantages and disadvantages of various exchanging alternatives.
    • Outline the mechanics of a successful tax-deferred exchange and the role of each party in those exchanges.
    • Identify common exchange documentation and describe the role of a qualified intermediary.
    • Define “boot” and explain how to deal with it.
    • Calculate whether a sale is preferable to an exchange.
  4. Code of Ethics
    • Identify the definition of ethics used in this course.
    • Briefly describe the four business ethics approaches used in this course.
    • List major categories of the Articles of the NAR® Code of Ethics.
    • Describe the structure of the NAR® Code of Ethics and its supporting materials.
    • Identify at least two aspirational concepts in the Preamble to the NAR® Code of Ethics, describe the concept of general business ethics and identify how the Code of Ethics compares and contrasts with the concept of general business ethics.
    • Describe the concepts of at least two of the following Articles of the Code of Ethics: Articles 1, 2, 3, 9, 11, 12, 16, and 17.
    • Identify possible violations of the NAR® Code of Ethics given interactive learning methods such as case studies, quizzes, role playing and group discussion of fact scenarios.
    • Briefly describe the professional standards enforcement process of a local board or association.
    • Differentiate between intentional fraud, negligent misrepresentation and negligence.
    • List the three violations of antitrust laws: price fixing, group boycotts and market allocations.
    • Describe how the existence of and adherence to the NAR® Code of Ethics is good for the real estate profession.
  5. Fair Housing
    • Understand the purpose of the Federal Fair Housing Laws and be able to identify the protected classes covered by the Fair Housing Act.
    • Be aware of the seven activities considered illegal as a result of the Fair Housing Laws.
    • Know the five exemptions from the Federal Fair Housing Laws for property owners.
    • Be able to recognize discrimination in real estate practice.
    • Be able to identify acts considered discriminatory under the Fair Housing Act of 1968 as amended in 1972 and 1988.
    • Understand the purpose of the Federal Equal Credit Opportunity Act (ECOA) and know the classes it protects.
    • Understand the purpose of the Americans with Disabilities Act ADA).
    • Know how the ADA affects real estate practice.
    • Know how Fair Housing Complaints are handled.
    • Know the penalties for non-compliance with Fair Housing Laws
    • Know how to incorporate business practices designed to prevent discrimination by real estate professionals.
    • Understand the purpose of the HUD/NAR Partnership and why it is important.
    • Know the most important principle in following HUD Advertising Guidelines.
    • Be able to identify acceptable and unacceptable words and phrases for use in advertisements.
    • Have learned how to apply those practices that will assist a REALTOR® in evidencing that he or she does not discriminate.
    • Know what the differences are between federal regulations and Texas State regulations on fair housing.
  6. Real Estate Appraisal
    • Identify and explain the fundamental concepts and terminology used in real estate valuation and appraisal.
    • Identify the basic capacities and skills of a qualified appraiser.
    • Recognize the valuation principles used in real estate appraisal.
    • Apply value theories to arrive at purchase prices of real estate.
    • Characterize a favorable market for real estate sales.
    • Differentiate the three approaches to value commonly used in appraisal.
    • Follow the eight steps to the appraisal process to arrive at an accurate purchase price.
    • Analyze and interpret an appraisal report.
    • Differentiate between appraisal licensure and certification.
  7. Real Estate Finance
    • Understand the basic concepts of real estate financing, and the key terms involved
    • Know how to qualify a buyer for the most common types of loans
    • Be familiar with the use and function of escrow accounts
    • Know what a Mortgage Insurance Premium is
    • Know the underwriting guidelines and process
    • Be familiar with the three most common types of loans: Conventional, FHA and VA
    • Know the advantages and disadvantages of conventional loans
    • Know how to use conventional qualifying ratios
    • Know the advantages and disadvantages of FHA loans
    • Know about the differing FHA qualification ratios
    • Know the advantages and disadvantages of VA loans
    • Be familiar with VA eligibility and qualification periods
    • Be able to calculate the amount of VA entitlement used
    • Be able to calculate VA loan amounts and required down payments
    • Know the process and qualifications for assuming VA and FHA loans
    • Be familiar with other types of loans available
    • Know how to underwrite and close loans

Regulatory Requirement

Our staff works diligently to provide you with an analysis of current mandates and legislation that affects you the licensee. All information pertaining to the Mandatory Continuing Education requirements can be found on the State Requirements page. You can find the link to this page on the upper Navigation bar on the Course Catalog.


Course Completion

Any applicable completion certificates or affidavits can be printed after completing the course and final exam.


Testing

Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.

Final Exam - Passing Grade 70%. You can take the final three times.


About The Subject Matter Expert

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